Pay a Rs 500 fine for linking Aadhaar-PAN now or face these consequences
PAN-Aadhaar link: The last date to link PAN-Aadhaar has already passed last month, and those who have not done the job will face some consequences. However, that would not mean your PAN will be rendered inoperative, the Central Council for Direct Taxes, or CBDT, said in its latest circular. The board, which sets the rules for income tax, said those who failed to link Aadhaar-PAN can do so by paying a fine of up to Rs 1,000 for up to the year. next.
The CBDT has extended the deadline for linking PAN-Aadhaar to March 31, 2023, but people who have not yet linked will be fined. A fine of Rs 500 must be paid “in the event that such an intimation is made within three months from the date referred to in the subsection”, i.e. before June 30, 2022. Beyond that, you have to pay a fine of Rs 1,000 to link Aadhaar-PAN.
“Therefore, in order to have a smooth application of Rule 234H and the existing Rule 114AAA, it is clarified that the impact of Subrule (2) of Rule 114AAA, i.e. where a person, whose permanent account number has become inoperative under sub-rule (1), is required to provide, imply or quote his permanent account number under the Act, he is deemed to have failed to provide, imply or quote the permanent account number, as applicable, as required by law, and shall be liable for all consequences provided by law for failing to provide, suggest or quote the permanent account number, shall come into force on April 1, 2023 and the period beginning on or after April 1, 2022 and ending on March 31, 2023, shall be the period during which the said sub-rule will not have its negative consequences of the nature referred to in that sub-rule or specified in paragraphs 4 and 4.1 above. taxpayer will be required to pay a fee pursuant to subrule (5A) of Rule 114,” the CBDT said in a circular dated March 30 this year.
Consequently, in case of non-communication of the Aadhaar number on the last extended notified date, i.e. March 31, 2023, the PAN assigned to the person will be rendered inoperative in accordance with the provisions of the law, added the CBDT.
An inoperative PAN will lead to a number of consequences such as inability to file a tax return, pending returns and unprocessed refunds, higher rate tax deductions and many more. Also, the taxpayer might encounter difficulties in various other areas such as banks and other financial portals, as PAN is one of the important KYC criteria for all kinds of financial transactions. Thus, PAN-Aadhaar binding is an important task
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